Advice on avoiding some of the pitfalls that can be involved in wine investment. News of wine investment scams. Say no to cold callers. Don't buy investment wines from companies you don't know or haven't checked out.
See page (right hand column) of companies from whom I wouldn't buy wine. Advice is always free, although there is a donate button on right-hand-side of the blog.

Filings with Companies House – Daniel White appointed 9.12.2014, company named changed on 10.12.2014

Below is a letter recently emailed by LCB Vinotheque to their customers warning about a George Harris (doubtless not his real name) and Portcliffe Capital Ltd. Harris is claiming to work for LCB and Portcliffe Capital Ltd is just another scam company claiming to be able to sell wine for investors. Instead once the wine is transferred they make the wine disappear leaving the all too trusting investor empty-handed.

Other companies playing this popular scam include Lewis Samuels' Samuels & Parker Ltd and Leon Brown's Bordeaux Exchange Ltd. Both companies target ex-clients of bust European Fine Wines Ltd.

'Dear Customer

I wish to update you further regarding our recent communications concerning
attempted scams being experienced by some of our customers.

We have recently received reports that some customers have been contacted, by
telephone, from an individual claiming to be a George Harris who works for LCB,
recommending they sell their wines through a company called Portcliffe
Capital. They claim the contact at Portcliffe Capital to be Darren Reid,
who can be contacted on 0203 633 3174. Please be aware that LCB are not
making these calls and would never approach our customers to offer to
buy wine or act as an agent in such matters.

Furthermore, another wine investment company to avoid - DSL Fine Wines
Ltd, based in Bromley, Kent, and the Director is Daniel Southey. We
wish to confirm that we have not, and will not, have any dealings with
them. For more information please visit Jim Budd's blog http://investdrinks-blog.blogspot.co.uk.
Again, we would encourage you to be extra vigilant, and if in doubt about any
matter relating to your account, our dedicated Customer Services team, here at
LCB Vinotheque, can be contacted on 0843 659 3617 or vtcustomerservices@lcb.co.uk.
Regards

David Hogg
Sales Director'

Portcliffe Capital Ltd has a share capital of all of £1. The sole director is Daniel White (DOB: 1975) of 1 Kingsley Road, Croydon CR0 3NP.

Below the only part of Portcliffe Capital's website that you need to read:

Disclaimer:

Portcliffe Group is a limited Company. Registered in England and Wales Company
no (8327546). Trading financial products entails a considerable risk factor and
is therefore not suitable for every investor. You should carefully consider
your financial situation and understand the risk (seeking independent advice if
necessary) prior to making any investment. Portcliffe Group is not Authorised
or Regulated by the FCA.*

Representatives from EHD and London City Bond
(LCB) met with me on Tuesday 21st April in Central London to discuss
launching a new initiative – Bonds against the Scammers. In particular they
will now be sharing information with each other and investdrinks about scam wine investment companies.

Although in competition with each other, EHD
and LCB are committed to making life difficult for wine investment scammers.
This is certainly business that they do not want.

It is not wanted because wine should be
enjoyable and they do not want to see their customers being ripped off. It is
also not wanted because when things go wrong and the scam company goes bust or
disappears, then it is usually the bonded warehouse that is left to pick up the
pieces. Left to deal with understandably upset and irate investors, who may
often have sunk a significant proportion of their life savings into wine they
either doesn’t exist or for which they have been charged far too much.

Although the bonded warehouses are not in any way part of these scams,
it is not surprising that some defrauded investors unfortunately assume that
the bonded warehouses are somehow part of the scam.

HMRC (HM Revenue & Customs) and the
money laundering regulations require bonded warehouses to carry out due diligence
on customers wishing to open accounts. It is clear that these regulations put
the emphasis on those wanting to open accounts to prove that they are
legitimate.

LCB and EHD already do refuse to open
accounts for companies they consider dubious as well as closing or freezing
accounts of companies or individuals whose accounts arouse suspicion.

Often scammers refused an account at one
bonded warehouse will apply to another bonded warehouse in the hope of slipping
through. EHD and LCB agreeing to share information on companies and individuals
refused an account or who arouse suspicion will make life more difficult for
the scammers.

The bonds will also exchange information on
their due diligence procedures and see how far these can be coordinated.

We hope that other bonds especially other
third party warehouses like Octavian will join in this initiative.

Formed as recently as 28th January 2015 DSL Fine Wines Ltd is yet another 'wine investment' company we could well do without. Being a 'leading wine merchant' after less than three months trading is decidedly impressive – if a tad unlikely!

The company is run from a residential address in West Wickham – slightly to the west of Bromley. The sole director is 26-year-old Daniel Southey (DOB: 11.11.1988). On his DSL website Daniel Southey falsely claims that the company has an account at Vinothéque, part of London City Bond and that they offer two years free storage there. Neither DSL Fine Wines Ltd nor Daniel Southey have an account at Vinothéque. Indeed David Hogg, sales director at LCB and who runs Vinothéque, has never heard of Daniel Southey or DSL Fine Wines Ltd.

DSL Fine Wines Ltd claims that wine investment will bring you long-term returns on average of 18-28% per year. A quick look at the Liv-ex indices will show that this is complete rubbish and a cynical attempt to mislead potential investors.

Friday, 3 April 2015

Now that APW Asset Management Ltd has been wound up in the public interest I expect that the Insolvency Service will now seek to appoint an insolvency practitioner to wind up the company and do the necessary investigation. This this case it will be important that, if an independent practitioner is appointed that they do a thorough investigation into not only the running of APW Asset Management but also to discover who is behind Big Wine Company Ltd, the chief shareholder of APW Asset Management Ltd and what links there may be to other wine investment companies.

See here.

As previously I have agreed to post the following notice for the information of creditors of APW. If there are other insolvency practitioners who also wish to be appointed liquidator of APW, I will be happy to post notices from them, too.

Message from David Ingram of Grant Thornton 'Following
the winding up of APW Asset Management Ltd it is likely that the
Official Receiver will convene a meeting of the company’s creditors to
appoint an independent Insolvency Practitioner as liquidator of APW.
At the time of writing the date for the creditors’ meeting has not been
set. The appointment of the independent liquidator will be based upon
the value of creditors supporting the nomination
of that Insolvency Practitioner. I am aware that David Ingram of Grant
Thornton is seeking the appointment as liquidator in this case; David
and his team have dealt with a number of fraudulent wine investment
companies, notably Bordeaux Fine Wines Ltd and
Fine Wine Vintners Ltd. David specialises in contentious insolvency
appointments – those cases that require a thorough investigation as to
the background of the insolvency and the dealings of the directors of
the company. David’s email address is
david.ingram@uk.gt.com and has advised me he is happy to answer queries from creditors of APW.'

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